As part of its ongoing review of the wholesale high-speed access (HSA) service framework, the CRTC is asking Canada’s telcos and cablecos for information regarding the appropriateness of mandating that all incumbents provide a 50 Mbps service on a wholesale basis to ensure low-cost options are available to customers.
The telecom regulator also wants to know if it would be appropriate to establish a single frozen rate for all services in the “up to 50 Mbps” rate band.
In April, the CRTC finalized the rates for aggregated wholesale HSA services over fibre-to-the-premises (FTTP) facilities. At that time, the commission said its focus would turn next to finalizing wholesale rates for the incumbent cable carriers, while work would also continue on setting final fibre-to-the-node (FTTN) rates for all incumbent local exchange carriers (ILECs).
In a letter dated Oct. 22, the CRTC noted the ILECs have been decommissioning copper-based FTTN networks over the last few years and transitioning their customers to services provided over FTTP networks. The commission asked the ILECs on the letter’s distribution list (Bell, Telus and SaskTel) if it is reasonable to assume that ILEC FTTN usage will continue to decline and that their FTTN-based wholesale services can now be considered legacy services.
“Provide your views on whether it would be appropriate to freeze the rates for wholesale high-speed access (HSA) services provided on ILEC FTTN networks,” the CRTC letter asked of the ILECs.
Regarding the appropriateness of mandating 50 Mbps wholesale access services, the CRTC’s letter asked all telcos and cablecos included on the distribution list (both incumbent and smaller independents) if a requirement to provide an “up to 50 Mbps” rate band should apply to both ILECs and cable carriers. “[O]r are there reasons, such as costing differences arising from different network technologies, to limit the requirement to one class of wholesale providers?” the letter asked.
All letter recipients were asked if there is a more efficient way to set the rate for an “up to 50 Mbps” rate band. They were asked to identify and discuss the specific considerations that should inform rate setting, and to explain how their proposal would support competition and affordability while reducing the administrative and regulatory responsibilities of both facilities-based and wholesale-based competitors.
In conclusion, the letter asks if it would be appropriate to set a single frozen rate for all services in the “up to 50 Mbps” rate band, based on the existing rate for the band that currently includes a 50 Mbps service.
Responses to the CRTC’s request for information are due by Nov. 5.
